An appellate court ruled against the Bloomberg administration's homeless policy today, banning implementation of rules that would have required a heightened burden of proof for New Yorkers seeking residence in city shelters.

The City Council sued the administration, using a technical argument that the administration did not follow the City Administrative Procedure Act when instituting the new practice.

"We are extremely pleased with today's decision which prevents the Department of Homeless Services (DHS) from implementing a policy that would have kept thousands of homeless men and women out of shelter," outgoing speaker Christine Quinn said.

"Shelter should be a last resort when all other resources have been exhausted. We are disappointed with the Court's decision today," said Thomas Crane, chief of the city Law Department's general litigation division.